Catalyst Paper disappointed with anti-dumping duty

Americans place 22.16 per cent anti-dumping duty deposit on some exports

Catalyst Paper, which owns the pulp and paper mill in Crofton, is disappointed with a recent decision by the U.S. Department of Commerce that will impose a large anti-dumping duty on the forest company.

The 22.16 per cent anti-dumping duty deposit is on the company’s exports of uncoated groundwood paper products, which is used to print newspapers, directories and catalogues, to American markets.

Uncoated groundwood directory paper was excluded from the duty.

The decision comes on the heels of the preliminary decision of the DOC on Jan. 9 that Canadian producers of uncoated paper are unfairly subsidized.

That means Catalyst, which exports a significant portion of its Canadian production to the U.S., faces countervailing duties of 6.1 per cent on its shipments to the U.S from that decision as well.

The DOC’s final determination of both the countervailing duty and anti-dumping duty is expected in August.

“We are very disappointed with this decision,” says Ned Dwyer, Catalysts’s president and CEO.

“This U.S. trade action is unwarranted and without merit. Even with the exemption of directory paper, the remaining anti-dumping and countervailing duties are onerous and a critical cost challenge for Catalyst. They pose a threat to our competitiveness and the sustainability of our business and we will continue to vigorously defend ourselves against them.”

Bruce Ralston, B.C.’s Minister of Jobs, Trade and Technology, said the province is “extremely disappointed” that the current U.S. administration has, once again, made the decision to impose unfair tariffs, this time on B.C. newsprint producers.

He said the workers in Catalyst mills can be sure that the government will be standing shoulder to shoulder with them.

“We will fight for their jobs, their industry and their communities,” Ralston said.

“We will not be bullied. We will not be pushed around. We will work closely with Catalyst and the federal government to fight this preliminary decision by the DOC, and demand that B.C. is treated fairly by its largest trading partner. People in B.C. can count on this government to fight for their jobs and their industries whenever they are threatened.”

Alistair MacGregor, MP for Cowichan-Malahat-Langford, said that an estimated $64 billion dollars could be lost and half a million Canadians could see their job impacted by the imposed tariffs and duties from the U.S.

“Yet, the federal government remains silent and has so far failed to come to the defence of the thousands of workers in British Columbia who will be negatively impacted,” he said.

“The Liberal government must take immediate action to protect this sector from unnecessary hardship and job losses.”

The Crofton mill employs more than 570 people, while Catalyst’s Powell River mill has almost 450 workers.

In November, 2016, the DOC decided after a review that Catalyst’s exports of supercalendered paper into the U.S. market would not be subject to countervailing duties because the company received a negligible amount of subsidies during the applicable period of review.

RELATED STORY: CATALYST PAPER WINS FIGHT

Catalyst requested the review, which looked specifically at its production during 2014, after the DOC imposed countervailing duties on imports of supercalendered paper from Canada in December, 2015.

Catalyst was saddled with a countervailing duties rate of 18.85 per cent, and paid more than $18 million in duties and legal costs before the countervailing duties on the company were suspended.



robert.barron@cowichanvalleycitizen.com

Like us on Facebook and follow us on Twitter

Just Posted

Caps end road trip with loss to West Kelowna

Cowichan goes 2-1 on Interior jaunt

Drivesmart column: Fear of police retaliation

While I won’t say that this is impossible, I would certainly like to think that it is highly unlikely

Former Cowichan Capital helping create BCHL Alumni Association

Shayne Taker a driving force behind new initiative

Helpline means nobody in Cowichan has to face dementia journey alone

Someone might call in because they’re starting to see changes in themselves or someone close to them

Cowichan Div. 2 women out-paced in last match of 2018

Soccer team has second game of the weekend postponed by weather

VIDEO: Cobble Hill welcomes Christmas with frolicsome show

From lovely carols to humorous skits: a big crowd enjoyed it all on Sunday, Dec. 9

Coming up in Cowichan: Celebrate the second floor with the HUB

Celebrate the second floor this weekend at HUB at Cowichan Station Dec.… Continue reading

Microscopic parasite found in Prince Rupert water affecting thousands

More than 12,000 residents affected by the boil water advisory issued Dec. 14

Trudeau lashes out at Conservatives over migration “misinformation”

Warning against the “dangers of populism,” Trudeau says using immigration as a wedge political issue puts Canada’s future at risk.

B.C. hockey coach creates ‘gear library’ to remove cost barrier of sport

Todd Hickling gathered donations and used gear to remove the cost barrier for kids to play hockey.

GoFundMe helps Vancouver Island teen battle a rare cancer

Nanaimo’s Michelle Reilly, 16, battling spinal cord cancer, seeking possible treatment in U.S.

Canada’s ambassador meets with second detainee in China

Global Affairs says John McCallum, Canada’s ambassador to China, met with Spavor Sunday

‘They’re coming:’ Flying cars may appear in urban skies by 2023

Air taxis will number 15,000 and become a global market worth $32 billion by 2035

B.C. VIEWS: Andrew Wilkinson on taxes, ICBC and union changes

Opposition leader sees unpredictable year ahead in 2019

Most Read